Sri Lanka attracted more than US$1 billion in foreign direct investment (FDI) in 2025, recording its strongest annual performance since 2022 and signalling renewed international investor confidence despite an increasingly uncertain global investment landscape. The findings were revealed in the World Investment Report 2026 published by the United Nations Conference on Trade and Development (UNCTAD).
According to the report, Sri Lanka’s FDI inflows reached US$1.044 billion in 2025, a substantial increase from US$759 million recorded in 2024. The growth reflects improving investor sentiment as the country continues its economic recovery while navigating global challenges, including geopolitical tensions, trade policy uncertainty and evolving international supply chains.
The report also highlights that Sri Lanka’s inward FDI stock expanded to US$18.23 billion in 2025 from US$16.6 billion a year earlier, demonstrating sustained long term foreign investment in the country’s economy. Meanwhile, Sri Lanka’s outward FDI stock increased to US$1.8 billion, indicating growing overseas investment activity by Sri Lankan companies.
Globally, UNCTAD reported that FDI rose by 6 per cent to US$1.6 trillion in 2025. However, much of this growth was concentrated in a limited number of economies and strategic sectors, including artificial intelligence, digital infrastructure, semiconductors, clean energy and critical minerals. The organisation noted that global investment remains constrained by geopolitical tensions, rising financing costs, policy uncertainty and intensifying technological competition.
The latest figures position Sri Lanka as a market regaining international investor attention, with stronger capital inflows expected to support economic expansion, infrastructure development, employment generation and private sector growth. The World Investment Report 2026 also reinforces the importance of maintaining policy stability, improving the ease of doing business and attracting high quality investments to sustain long term economic resilience.
